Indonesia starch industry leaders learn about U.S. corn export system

WASHINGTON, D.C., U.S. — Senior leadership from the Indonesian starch industry visited Kansas and New Orleans, Louisiana, U.S., in late August to talk directly with U.S. agribusiness representatives and farmers.

The trade team, organized by the U.S. Grains Council (USGC) in collaboration with the Kansas Corn Commission, assessed the capabilities of the U.S. corn export system through visits to grain inspection offices, corn export facilities, corn farms, corn wet milling plants, river terminals and container loading facilities.

Prior to the team’s arrival, 73,500 tonnes of U.S. corn was sold to Indonesia.

“The group was impressed with the size and scale of U.S. operations in addition to the care and attention to quality U.S. farmers have for their corn,” said Caleb Wurth, USGC assistant director of Southeast Asia.

The team visit included firsthand experience with the quality, testing and handling of grain at the last point of contact before departing U.S. shores. Team members were able to board a vessel being loaded with U.S. product in New Orleans and witness barges being unloaded into the export elevator.

“It is important for the group to see the care and attention to detail that goes into making sure they, as customers, receive the quantity and grades sold to them,” Wurth said. “We understand the Indonesian corn buyer has options. This mission showed the passion and commitment to quality of U.S. agriculture from the farmer to the export elevator — sought after qualities when choosing a trading partner.”

Indonesia is the fourth most populous country in the world with a rising middle class, resulting in more demand for meat and the feed needed to produce it, the USGC said. While Indonesia does produce corn, domestic supplies suffer from extreme yield variations, and volumes are insufficient to keep pace with the animal feed industry like the poultry sector, which is expanding at nearly 8% per year.

The team visit stressed the importance of solid and mutually-beneficial trade partnerships. Indonesia imported 620,000 tons (24.4 million bushels) of U.S. corn in the 2016-17 marketing year, solely for food processing. Of this corn milling demand, U.S. imports achieved only 20% to 30% market share.

“Indonesian starch facilities prefer imported corn, and U.S. corn is particularly valued for high milling yield,” Wurth said. “This trade team builds on prior Council missions to assess what the starch industry needs to foster growth and increase demand for U.S. corn.

“It is important we work together to ensure profitability of both the U.S. farmer and the Indonesian starch industry. We can achieve this goal by having an open dialogue to ensure we, as exporters, produce and deliver what our partners want and need.”

Rogers Foods recently invited World Grain to tour its expanded flour mill in Chilliwack, British Columbia, Canada. An article about the mill expansion and other recent company activities will appear in the April issue of World Grain.